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If I were Chancellor

17 June 2008 / Jan Ellis
Issue: 4163 / Categories: Comment & Analysis , Capital Gains
An occasional series of thoughts by our contributors. JAN ELLIS takes up residence in Number 11 for a day

If I were Chancellor I would introduce a 'situs test' for capital gains tax.

There is no particular reason I can see to exclude assets in the UK that are owned by a non-resident individual or company. Many other countries have comparable legislation so we would simply be levelling the playing field.

While it's true that most double tax treaties would then prevent the UK from collecting the tax we would still generally be able to collect the tax on gains on real estate and all assets owned by people based in tax havens.

Given recent property price movements notwithstanding the current uncertainty the tax raised from capital gains tax on sales of commercial and residential property held by non-residents would be significant.

Unlike the 'non-dom' debacle or squeals of protest following the abolition of the 10p income tax rate or business asset taper relief there...

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